Japan's JFTC Under New Chair Eiji Chatani Outlines Key Competition Priorities

New Leadership Sets Strategic Direction

Japan's Fair Trade Commission (JFTC) has announced its updated competition law priorities under the leadership of its new Chair, Eiji Chatani. Appointed in May 2025, Chatani, a former Administrative Vice Minister of Finance, has outlined a comprehensive agenda aimed at invigorating Japan's economy and addressing contemporary market challenges, including those posed by rapid digitalization and an aging population.

In his inaugural statements, Chair Chatani emphasized the urgent need for Japan to 'break free' from a shrinking economy, highlighting that the JFTC's enforcement priorities are designed to promote innovation and ensure fair competition across various sectors.

Heightened Scrutiny on Digital Platforms

A significant focus of the JFTC's updated strategy is the heightened oversight of digital platforms. The Commission plans to take 'strict measures against anti-competitive conduct by digital platform operators' and is actively recruiting engineers, data analysts, and technology officers to bolster its investigative capabilities.

A key legislative development in this area is the Mobile Software Competition Act (MSCA), which is slated to take full effect in December 2025. Inspired by the European Union's Digital Markets Act (DMA), the MSCA aims to prevent dominant platform providers, such as Apple and Google, from engaging in self-preferencing practices related to their app stores, browsers, and payment systems.

The JFTC is also actively pursuing international collaboration on digital platform regulation. In July 2025, it entered into a Digital Cooperation Arrangement with the European Commission, establishing coordination for the enforcement of the MSCA and DMA.

Enhanced Support for Small Businesses and Fair Trade Practices

Another core priority for the JFTC under Chair Chatani is ensuring a fair transaction environment for Small and Medium-sized Enterprises (SMEs). The Commission will rigorously tackle unfair trade practices, including the abuse of superior bargaining positions and violations of the Subcontract Act.

Amendments to the Subcontract Act, which provide additional protections for SMEs—such as prohibiting dominant firms from imposing unilateral payment terms without negotiation—are set to come into effect in January 2026. Furthermore, the Freelance Act, enforced in November 2024, also forms part of the JFTC's efforts to safeguard the interests of smaller businesses and independent workers.

Broader Enforcement and International Cooperation

Beyond digital platforms and SMEs, the JFTC will continue its strict enforcement of the Antimonopoly Act, particularly targeting cartels that impact consumers' daily lives and conducting prompt reviews of mergers and business combinations.

Chair Chatani has also emphasized strengthening the JFTC's resources and fostering international cooperation. He has engaged in high-level discussions with foreign competition authorities, including attending the G7 Competition Summit in October 2025 and holding bilateral meetings with US and UK competition agencies in September 2025. The JFTC also views 'green initiatives' and ESG collaborations favorably, distinguishing its approach from some other antitrust agencies.